Easyjet says its costs will likely rise by �85m

The news saw Easyjet's shares fall as much as 13% in Thursday trading.

If fuel prices remain at current levels, Easyjet said they will add an extra �85m to its costs in the six months from 1 April to 30 September.

It said that forward prices for its fuel had risen from $840 per tonne to $1,000 per tonne since 7 February.

'Emerge as winners'

"It is pretty obvious that if the recent significant rise in the fuel price is maintained, then our second half profits will be lower than we had previously expected," said chief executive Andy Harrison.

"Of course the price of fuel will hit all airlines and we remain convinced... that we shall emerge as winners in a high-oil price environment," added Easyjet.

The airline's shares were down 12% or 45.75 pence to 329.25p in afternoon trading.

Its fuel warning also hit the stock of its rivals, with shares in Ryanair down 10%, while British Airways was 4% lower.

Easyjet said its first half profits would meet expectations.